The budget line is useful for illustrating the notion of opportunity cost.
The marginal revenue product of labor
Which of the following is not among the factors that lead to economic growth?
a. Increases in employment
b. Increases in the capital stock
c. Improvements in technology
d. Government transfer programs
e. Political stability and an efficient legal system
The 1978 Full Employment and Balanced Growth Act called for a target unemployment
rate of
a. 0 percent
b. 5 percent
c. 1 percent
d. 2 percent
e. 4 percent
The difference between accounting profit and economic profit relates to
If inflation is fully anticipated and if there are no restrictions on contracts, then inflation
will not redistribute purchasing power.
If the price of bread were zero, a budget line between bread (on the vertical axis) and
cheese (on the horizontal axis) would
A copyright
Refer to Figure 11-6. Which point represents the level of autonomous consumption?
a. A
b. B
c. C
d. D
e. E or F
If a person who does not pay for a good can be prevented from consuming it,
If GDP is $1,000, consumption is $750, interest payments are $200, rent payments are
$400, and profits are $200, what must wages and salaries equal?
a. $800
b. $400
c. $250
d. $0
e. $200
In the value-added approach, GDP is the sum of revenue received by all firms in the
economy.
Federal subsidies to higher education have the effect of
An increase in the price of the good measured on the vertical axis of a budget line
diagram will
Use the table below to determine the marginal propensity to consume (MPC).
a. 0.7
b. 0.8
c. 0.9
d. 1.0
e. 1.8
The inflation rate for a given year is found by taking the percentage change in the
Consumer Price Index (CPI) from the base year to the year in question.